Carbon Capture CO₂ Pipeline Easements: Landowner Guide

Carbon capture and storage (CCS) pipelines are among the most controversial infrastructure projects in agriculture today. Companies like Summit Carbon Solutions, Wolf Carbon Solutions, Navigator CO₂, and Heartland Greenway are seeking easements across hundreds of thousands of acres of Iowa, Nebraska, Illinois, Minnesota, South Dakota, and North Dakota farmland. For many landowners, this is the first time they have ever dealt with a pipeline easement — and the companies are counting on that.

What Is a CO₂ Pipeline Easement?

A carbon dioxide pipeline easement is a legal agreement granting a pipeline company the permanent right to install, operate, and maintain a high-pressure CO₂ pipeline beneath a strip of your land. The company pays you a per-acre or per-rod fee in exchange for this permanent encumbrance on your property. The easement typically runs with the land in perpetuity — meaning it binds future owners of your property as well.

CO₂ pipelines operate at extremely high pressure and carry risks that differ from natural gas pipelines. A CO₂ release is not explosive, but it is an asphyxiant — it displaces oxygen and can be lethal in a low-lying area or enclosed space. This risk profile is relevant to how easements are valued and to the safety terms you should negotiate.

What Rights Do CO₂ Pipeline Companies Have?

This is actively contested. Unlike natural gas pipelines regulated as common carriers by FERC, CO₂ pipelines are regulated differently in each state. Whether CO₂ pipeline companies have the right to use eminent domain — to take easements by force if landowners refuse — is a live legal and political question:

• Iowa: Summit Carbon sought and was initially denied eminent domain authority by the Iowa Utilities Board. The legal fight is ongoing. Multiple legislative efforts have sought to restrict CO₂ pipeline eminent domain authority in Iowa.
• North Dakota: The state legislature passed laws restricting CO₂ pipeline eminent domain authority, blocking Summit Carbon’s project in that state.
• South Dakota: The Public Utilities Commission denied Summit Carbon a permit, effectively blocking the project in that state.
• Nebraska, Illinois, Minnesota: Legal status varies and continues to evolve. Consult a local professional for current status.

The fact that a pipeline company claims eminent domain authority does not mean that claim is legally valid in your state. This is one of the most important reasons to get professional representation before signing or refusing any CO₂ pipeline easement.

What CO₂ Pipeline Easements Typically Cover

A typical CO₂ pipeline easement offer includes:

• A permanent easement strip, typically 50 to 75 feet wide (sometimes wider for construction)
• A temporary construction easement for additional working room during installation
• Restrictions on what you can do in the easement corridor (no deep-rooted trees, no buildings, depth restrictions on tillage)
• Rights for the company to access the easement for inspection, maintenance, and repair
• A one-time per-acre or per-rod payment (sometimes structured as annual payments)

What CO₂ Pipeline Easement Offers Often Miss

The initial offers from CO₂ pipeline companies frequently fail to fully compensate landowners for:

• Drainage tile damage and replacement: Installing a pipeline through tiled farmland is one of the most disruptive agricultural impacts possible. Full restoration of tile systems to pre-construction function must be included.
• Soil compaction and productivity loss: Heavy equipment and pipeline installation compact subsoil. Productivity losses can persist for years after restoration.
• Topsoil separation and replacement: Proper topsoil separation, storage, and replacement during pipeline installation is critical — and not always done correctly.
• Severance damages to remainder: The pipeline easement permanently bisects your farm, affecting field operations, equipment movement, and potentially crop insurance rates.
• Future development impacts: A CO₂ pipeline easement permanently restricts development of the easement corridor, which may affect your property’s long-term value.
• Liability and indemnification: What happens if the pipeline leaks or ruptures? The easement’s indemnification and liability provisions directly affect your exposure.

Key Terms to Negotiate Before Signing

• Drainage tile provisions: Require joint inspection before construction, detailed restoration specifications, and a warranty period after restoration
• Topsoil separation: Require specific written protocols for topsoil separation, storage, and replacement
• Compaction testing: Require post-construction soil compaction testing and remediation to specified standards
• Depth requirements: Specify minimum burial depth, especially in areas with heavy agricultural equipment
• Crossing agreements: Ensure you retain the right to cross the pipeline with farm equipment and receive compensation for any restrictions
• Assignment restrictions: The easement should not be freely assignable to any future company without your consent
• Abandonment provisions: What happens to the pipeline if the project is abandoned or the company goes out of business? Who is responsible for removal?

Should You Sign or Refuse?

This is the wrong question. The right question is: “What are the full terms I should be negotiating, and what is my property actually worth?” Whether you ultimately sign depends on whether the company can be brought to terms that fairly compensate you for all impacts. Many landowners who initially refused eventually signed — but only after negotiating substantially better terms and higher compensation than the initial offer. Others have refused entirely and successfully defended that decision in court.

Do not make this decision alone. Get independent professional representation before you respond to any CO₂ pipeline easement offer.

General information only — not legal advice. Consult a qualified attorney for advice specific to your situation.